2. 2 DPS Realignment Plan Division of Finance April Royster, CPA Executive Director Office of Accounting

3. 3 * NOTE: Between 2003-2007 41,576 students were lost totaling $291,032,000 * (K – 12) (Projected)

4. 4 Total Cost $1,104,364,293.11

5. 5 Total Revenue vs Personnel Costs FY07 Percent Revenue $ 1,355,906,989100.00% Personnel Costs 1,104,364,293 81.45% Funds Available For other costs $ 251,542,696 18.55%

6. 6 Total Revenue vs Personnel Costs FY08Percent Projected Revenue $ 1,240,483,052100.00% FY07 Personnel Costs 1,104,364,293 89.03% Funds Available For other costs $ 136,118,759 10.97%

7. 7 FY07 Amended February 28, 2007 FY08 ProjectedDifference Total Available Resources $1,377,929,682$1,241,230,200($136,699,482) Total Expenditures and Transfers$1,376,359,916 * $1,359,026,586 ($17,333,030) Revenue for repayment of uncollectible delinquent taxes Ending Fund Balance ($2,000,000) $1,569,766 ($2,000,000) ($117,796,386) 0 ($119,366,452) DPS FY07 – FY08 Comparison General Fund (11,13,14,22) Appropriations FY08 Expenses Include: Decrease in staffing of 333 General Fund Positions amounting to ($28,333,330) Decrease in special education supplement of $5 million 1% Increase in DFT Salaries amounting to $6 million

8. 8

9. 9

10. 10 District Realities  Noncompliance with the Deficit Elimination Plan  $210 million loan immediately becomes due & payable  A financial manager gets appointed to the District

11. 11 District Realities  Reduction in Facilities costs  Reduction in programs being offered - i.e. Fine Arts $14 million, Athletics $3.5 million, Student Aids/Co-ops $4.8 million, Noon-hour aides $9.4 million  Additional lay-offs – Approx. 1,800 persons

12. 12 District Realities (con’t)  Additional concessions and concession increases required by remaining employees  Reductions in non-instructional personnel, i.e. security, custodians, etc.  Increase in over class-size pay-outs  Loss of valuable staff, and increased decline in morale due to the above.

13. 13 District Realities (con’t) State of Michigan FY 2007 deficit - $920 million City of Detroit FY 2007 deficit - $163 million Detroit Public Schools FY 2008 projected deficit - $118 million “Nobody’s coming to SAVE US!”

14. 14 DPS Realignment Plan Division of Business Services Darrell Rodgers, Ph.D. Chair DPS Realignment Planning Committee 2007-2008 Chief Of Facilities Maintenance and Auxiliary Services

15. 15 Purpose of the Plan  Preserve Strong Academic Programs and Support New and Innovative Programs  Reduce Expenses by Eliminating Excess Space

16. 16 IMMEDIATE & BOLD ACTION REQUIRED DPS Financial Condition

17. 17 DPS Facilities/Enrollment ENROLLMENT 119,893 (PK-12) PROGRAM CAPACITY 180,822 SEATS AVAILABLE 60,929 40+ BUILDINGS < 50% FULL CLASSROOMS VACANT 642

18. 18 DPS Capacity and Loss of Students REVENUE TIED TO ENROLLMENT 50% BUILDING OCCUPANCY = 100% COST 60,000 Empty Seats

19. 19 Realignment Committee  Committee Formed in October 2006  All DPS Departments Represented  Stakeholder Outreach Meetings Held

20. 20 Realignment Committee  Preliminary Realignment Plan Released, January 5, 2007  Responsibility:  Preserve Strong Academic Programs and Support New and Innovative Programs  Develop plan for “rightsizing” District Facilities with enrollment

21. 21 Objectives  Increase the potential to achieve educational excellence  Increase enrollment in under populated schools to maximize the use of the “better” buildings

22. 22  Increase operational efficiency while keeping students as close to home as possible and managing transportation costs  Maximize the use of operationally efficient facilities Objectives

23. 23 Considerations For Realignment:  Capacity vs. Enrollment  Enrollment Trends  Academic Achievement  Better Academic Culture/Climate  Building Condition  High Operational Costs  Residential Development Realignment Committee

24. 24 Public Engagement  DPS Internal Stakeholders  Principals  Curriculum / Instruction  Facilities Services  School Leadership & Accountability  Other Departments

25. 25 Public Engagement  External Stakeholders  Detroit Federation of Teachers (DFT)  Other Union Leaders  City Officials  Skillman Foundation  New Detroit, Inc.  Others  Community Input Meetings on Realignment Process  Community Forums on School Realignment

26. 26 Public Engagement  City-Wide Parent Information Meetings  Public Hearings Conducted  Over 60 Written Proposals Reviewed  Site Visits  Realignment Plan Revised

27. 27 Plan Highlights 333 Buildings to close by Fall 2007 TTen (10) conditional closures by Fall 2008 EEmpty seats decreased by 32,250 PProjected annual savings: Over $16.9 million starting 2008 OOpportunity to flatten central office

28. 28 Plan Highlights  Preserve successful schools & programs  Reading First  Schools With Increasing MEAP Scores  Increase Busing & Transportation Opportunities  Busing Costs Not Impacted Significantly

29. 29 Plan Highlights Not Just a Closure Plan TTurnaround Plan IImproving Education with focus on Academic Achievement IImproving School-Based Leadership IImproving Customer Service SStabilize Enrollment

30. 30 Plan Highlights New and Expanded Programs  Single Gender 7-12 Grade Academies  23 NEW theme-based schools  Three (3) K-12 neighborhood campuses  Ninth Grade Academy Pilot Program  Expanded Alternative Education Programs  Restore and enhance curriculum to increase student achievement and performance

31. 31 Plan Benefits MMaximize utilization of better buildings CConcentrate all resources to better serve students, parents and staff MMobilize resources to provide safe learning environments, transportation offerings and increased security

32. 32 Plan Benefits Redirect resources for:  Security  Curriculum and Technology  Housekeeping  Maintenance (ex. painting, lighting, restroom improvements)  Building and grounds improvement Improve customer service & satisfaction  In our schools  In district offices  In related facilities

33. 33 Plan Benefits  Redesign schools to meet the academic needs of our students  Flatten central office organization and create a service-oriented culture that delivers equitable services to students and schools

34. 34 Plan Implementation  Challenging Task Ahead  Additional Meetings with School Staff and School/Community Stakeholders  Multi-Year Support

35. 35 Plan Implementation  Transition Teams  Counselor  Social Worker  Public Safety Officer  LSCO Chairs  Curriculum Specialist  Administrator  Teacher Representative  Transition Team Coordinator  Open House events at receiving schools  Before school year ends  During the summer months.

36. 36 Next Steps  School Board Approves Realignment Plan  Integrated Plan – Changes have a ripple effect  Meetings at closing schools within the next 30 days  Information for Parents/Community  Staff Meetings to discuss process and concerns  Team Building Development  Customer Service Training  Letter(s) to parents impacted with notice of newly assigned school(s) ~ May, 2007  Telephone Hotline for Realignment Plan Information

37. 37 Next Steps  Coordinate with the Opening of School Task Force  Logistics and Move Management  Construction Modifications at Receiving Schools  Close and/or Decommission Buildings  Development of Facilities Master Plan

38. 38 Conclusion “Realigning DPS for Success”  Stop Spending Money on Empty Spaces  Enhance Academic Performance  Increase Enrollment in Better Buildings  Improve Operational Efficiency  Publicize Competitive Advantages  Stabilize Enrollment

39. 39 District Realities State of Michigan FY 2007 deficit - $920 million City of Detroit FY 2007 deficit - $163 million Detroit Public Schools FY 2008 projected deficit - $118 million “Nobody’s coming to SAVE US!”

40. 40 “Realigning DPS for Success”

41. 41 DETROIT PUBLIC SCHOOLS REALIGNMENT PLAN 2007-2008

42. 42